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The Shenzhen government in China provided residents with incentives to purchase new electric cars and plug-in hybrid vehicles. New or replaced all-electric vehicles will be subsidized in the amount of up to 20,000 yuan ($2,800).
Incentives begin from May 1, 2020 to December 31, 2020. All Tesla cars are eligible for this subsidy, which will certainly increase demand, which will lead to higher rates in subsequent quarters of the company.
On April 30, the Shenzhen Development and Reform Commission issued "Some Measures on Promoting the Promotion and Application of New Energy Vehicles in Shenzhen (Consultation Draft)" to deal with the consequences of Covid-19.
In particular, the government is weakening certain conditions for obtaining benefits for the acquisition of a new vehicle.
Who will be able to receive incentives:
- non-Shenzhen residents with a valid residence permit in Shenzhen,
- Chinese overseas
- Residents of Hong Kong, Macau and Taiwan
- foreigners who apply for visas or residence permits in this city with valid identification documents and in accordance with the provisions of the municipality's public security body.
These measures also include expanding the scope of individual purchases of new electric vehicles. For individual consumers who have only one car registered in Shenzhen under their own name, it is possible to purchase another new car. Incentives apply for all-electric vehicles as well as for hybrid vehicles with plug-in.
Financial subsidies for the full use of new electric vehicles are provided only by individuals. For premium electric cars or fuel-efficient cars, incentives are 20,000 yuan. For hybrid passenger cars 10,000 yuan.
These measures also provide for the introduction of financial subsidies for individuals to replace and upgrade new electric vehicles. Financial subsidies will be provided to individual consumers who replace old fuel vehicles with new electric ones.
The new regulation also prescribes an increase in incentives for parking new electric vehicles. Providing an exemption from temporary parking fees during the 1st hour for new electric vehicles for parking lots throughout the city.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.